The highly prospective Teren-Sai deposit, adjacent to the Sekisovskoye mine, has the potential to enable us to grow significantly beyond our core asset based at the Sekisovskoye mine with an area of 200 km2.
The Teren-Sai Project is an exploration and development project of AltynGold Plc. It is located in the East of Kazakhstan and is adjacent to Altyn's operating Sekisovskoye Mine. Estimated mineral resources are 9 million ounces of gold, as well as 16 million ounces of silver with the possibility of transferring ore reserves into industrial categories after further exploration.
The Subsoil Use Contract for the Teren- Sai Project is held by MMC Altyn MM LLP ("MMC Altyn") a wholly owned subsidiary of Altyn. The Teren- Sai Project was granted Subsoil Use Contract No. 48-40-TPI, effective from 27 May 2016. The Subsoil Use Contract is an Exploration Contract, valid for gold ore, which covers an area of 221.25km2 but excludes an area of 0.56km2, resulting in a total area of 220.69km2. The excluded area forms the boundary for the Subsoil Use Contract for the Sekisovskoye Mine. The contract is valid for a period of 6 years with the option to extend for a further 4 years.
It has the potential to enable us to grow significantly beyond our core asset based at the Sekisovskoye mine with an area of 221 km2. While covering a total of 15 targets, Altyn's initial focus has been solely on Area No.2 in particular two of its four breccia bodies.
The appraisal work carried out in this area, made use of the historic data purchased by the Company and related to core drilling, exploratory trenching and detailed metallurgical test work.
Exploration area of 221km2 around Sekisovskoye deposit
Good infrastructure, roads, and access to existing processing plant
Significant prior exploration and mining (mapping drilling, trenching, sampling)
Historical exploration database contains results from 261 holes of total 95 588 r.m.
19 identified breccia pipe structures
Multiple other mineral deposits including Pb and Cu
15 exploration targets with significant prior works
Targeted run-rate production for ~9 years
Total in-site contained proved reserves of Gold (JORC 2012)
575 US $/oz
All-in Sustaining Cost (AISC)
TEREN-SAI-2 (Area #2)
The Teren- Sai-2 is a gold exploration project that is 1 out of 15 targets at Teren-Sai Field which were identified in the historical data. The Teren- Sai Project is located in the East Kazakhstan Oblast and is adjacent to Altyn's operating Sekisovskoye Mine territory.
The deposit being located 5 km, in the north-western part of the currently operated Sekisovskoye deposit has a sufficiently developed infrastructure which will enable us to establish an independent large mining-and-processing enterprise, and integrate it into the current operations.
Teren-Sai-2 consists of four breccia bodies. Altyn is currently targeting two of these breccia structures for development at this stage.
The maiden Mineral Resource and Ore Reserve estimates are based on exploration drilling conducted since acquisition of the subsoil use contract in 2016 and 31 May 2019 as well as historical drilling data. Altyn's independent consultant, Ernst and Young Advisory Services (Pty) Ltd ("EY"), has prepared a CPR for the 100% owned Teren-Sai Project located in Kazakhstan. The CPR includes the maiden Mineral Resources and Ore Reserves estimate for the Teren-Sai Project.
The development of the Teren-Sai is currently being carried out using the existing assets and infrastructure of the Company. External funding will be considered as the project progresses with consideration of the cost of development and all associated costs.
The Teren-Sai is located close to the Sekisovskoye, northeast of Ust-Kamenogorsk, the regional capital, in the North East Kazakhstan, with excellent local infrastructure to support exploration and production